Renewable energy is the future of our economy and early investors have the opportunity to opt in now. It’s a risky endeavour, but I think the UK’s own AFC Energy (LSE: AFC) has what it takes.

Renewable energy challenges

Renewable energy is well-known but has been a relatively under-utilised technology. There are several challenges that need to be overcome if we are to reach a sustainable net-zero target.

The two biggest are intermittency and energy loss over distance. Wind and solar energy sources are abundant and clean but intermittent. We can’t rely on them to generate all the electricity we need around the clock. Electricity also loses energy the further it has to travel, which is why we can’t power homes in London with solar panels in the Sahara.

What I think we need is a fuel source which is energy-dense, transportable, and produced by renewable means. I believe that that fuel is hydrogen and that AFC has a part to play it its adoption.

ACF Energy

AFC Energy is a Surry-based company that manufactures the fuel cells needed to make hydrogen fuel function.

What AFC has to its advantage is a patent on a new ‘alkaline fuel cell’, which is able to use lower purity hydrogen fuel. Producing hydrogen fuel is currently expensive and difficult, especially at the levels of purity required to run a fuel cell. AFC also manufactures modular hydrogen generators able to power buildings as well as vehicles.

Share price

2021 has been an interesting year for the company. It increased revenues over previous years, expanded its orders, and developed new products. The share price sits today at 49.30p, which isn’t unreasonable considering the size of the company and is up about 166% from this time last year.

But, overall, the share value has declined 40% since the start of 2021, which initially confused me. AFC is debt-free at this time and revenues are projected to grow a further 100% next year. On top of that the share price shot up 350% in November of 2020!

I eventually learned that, at the end of October 2020, AFC announced it had delivered its alkaline technology to its research partners, leading me to believe that investors grew overexcited at the news. 2021 was just a correction year.

Doubts

I do have some concerns about AFC. Revenues may be up but earnings are falling. The company is expanding its operations and reinvesting in itself, but it isn’t projected to turn a profit for another few years. It is a high-risk investment based on whether hydrogen is adopted en-masse.

Or not.

We have seen some movement in this direction. JCB recently placed a £1bn order for hydrogen from Australia, and AFC has just signed a £4m order with ABB, a Swiss electrical company, for a high-power electric vehicle charging application.

The use cases for hydrogen fuel increase every day, from industrial machinery and high energy manufacturing to something as simple as electrifying the developing world. Any one of these markets has the potential to grow exponentially over the coming years. AFC’s alkaline fuel cells have the potential to bring down costs for anyone using them. It has a serious advantage over the competition, which makes it worth adding to my portfolio.

The post Renewable energy: can the AFC Energy share price rise again in 2022? appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

James Reynolds has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

1. Accsys PLC

Accsys (LSE: AXS) is a building supplies manufacturer that produces and sells sustainable wood for construction. With its headquarters in London, Accsys sources wood from several locations across northern Europe, then exports it to countries around the world. The benefits of using wood as a building materiel are twofold. One is that wood is a renewable resource that can be carefully managed. The second is that wood acts as a carbon sink, a way to collect CO2 from the atmosphere and store it indefinitely. Storing carbon will become an important part of the green transition and could be a great source of revenue for the company in the future.

Accsys also treats its wood with unique chemicals to make it more durable and extend its effective lifespan.

Accsys does have some challenges to overcome. It has weathered the pandemic but took on debt to do so. However, revenues are up, and if Accsys is able to reduce its debt to pre-pandemic levels then I think it has a chance to become a great, renewable, growth stock.

2. AFC Energy

AFC Energy (LSE: AFC) is a Surry-based designer and manufacturer of hydrogen fuel cells and other hydrogen products. It currently has a patent on several modular fuel cell designs that are transportable and able to run on lower quality hydrogen (meaning with more impurities).

Hydrogen fuel cells work by mixing hydrogen with oxygen, releasing electricity and heat. Producing hydrogen is currently difficult and expensive, but it is possible to do so in a renewable fashion. This is called green hydrogen. If fuel cells are able to use lower quality hydrogen, then producing it will become cheaper, encouraging adoption by everyone else.

AFC has a great market capitalization of £342m and is currently trading at a very cheap 50.82p. It also doesn’t pay a dividend, which is something I like in new companies.

AFC has struggled through the pandemic and only has enough cash to sustain business for another year. It is expected to increase revenue by 100% each year, but is not projected to become profitable for another three years.

I strongly believe that hydrogen power has massive growth potential and will really help our economies to become more renewable. But for now, I will just be watching how AFC manages over the next few years.

Conclusion

The green transition is happening right now, and presents a very exciting opportunity. Both of the companies I’ve looked into today are relatively small, and have clear issues which need to be resolved. But I think they both have big potential upsides. I will not be adding either to my portfolio just yet, but will continue to keep a close eye on them both.

The post 2 ‘must watch’ FTSE 350 renewable stocks appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

James Reynolds does not have a position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, with higher risks can come higher rewards. Smaller companies have historically outperformed their larger peers in the long term. With that in mind, it could be worth buying these two small-caps for the long run.

Upbeat outlook

Reporting on Monday was LED lighting technology specialist Dialight (LSE: DIA). The company announced its CEO has stepped down with immediate effect after its recent product delivery performance proved significantly disappointing. It states that the new CEO, Martin Rapp, has prior experience in the sector, and that it may be possible for him to help lead the business through its current difficulties.

In terms of trading, Dialight expects its revenue and EBIT (earnings before interest and tax) to be £181m and £9.7m, respectively, for the year to 31 December 2017. It continues to expect a second-half weighting for the company’s trading performance in 2018. It remains confident in its long-term growth prospects and in the sustainability benefits of its products for customers.

With the stock forecast to deliver a rise in its bottom line of 76% in the current financial year, it appears to have a bright future. Certainly, there is scope for this figure to be downgraded significantly, but with the company’s shares trading on a price-to-earnings growth (PEG) ratio of just 0.2, they seem to offer a wide margin of safety. Therefore, while potentially risky, Dialight could offer high rewards in the long term.

Encouraging progress

Also updating the market on Monday was industrial fuel cell power company AFC Energy (LSE: AFC). It announced that it has completed the successful development and operational validation of the enhanced fuel cell stack and cartridge. It incorporates a number of design enhancements initiated over the last year and claims it exhibits significant progress in terms of longevity, availability, cost and efficiency measures.

Encouragingly, the results achieved thus far from operating the fuel cell provide outputs which closely match the results observed from months of extensive computational simulation.

Additionally, the latest electrode pairings that were tested during December show extended operational life for the fuel cell electrodes. They “significantly exceed” the longevity targets set for 2017. There is now a plan to undertake ongoing testing work for delivery of an electrode pairing that will achieve a four-year operational life.

Following its update, the AFC Energy share price has risen 6%. Although the stock remains highly volatile and risky, the growth potential for cleaner forms of energy remains high. As such, while it should only form part of a diversified portfolio, it could generate exceptionally high returns in the long run if it’s able to continue with the progress made in recent months.

The post 2 small-caps to help you save over £1 million by retirement appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Peter Stephens owns shares in AFC Energy. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, the period has been a tale of two halves, with Genel’s share price initially falling heavily due to a declining oil price as well as a reduction in reserves estimates for one of its key assets. In recent weeks though, Genel’s share price has begun a recovery of sorts, rising by 66% since its February low.

Clearly, there’s scope for the oil price rise to continue and for investor sentiment towards Genel to improve. However, Genel also appears to offer significant risks, with the expected impairment to its asset base resulting from lower reserve estimates likely to hurt investor sentiment over the medium term. And with Genel still suffering from relatively high geopolitical risks, there appear to be better options within the oil and gas industry for long-term investors.

Profits ahead?

Similarly, mobile payments specialist Monitise (LSE: MONI) is up by a rather modest 5% since the turn of the year. However, Monitise has risen sharply since its February low, with it being up over 70% since then.

Clearly, investor sentiment has improved dramatically even though Monitise is forecast to remain in the red during each of the next two financial years. And while its pre-tax losses are due to narrow to £33m this year and £15m next year, the company still appears to be some way off developing a business model that results in profitability.

Certainly, Monitise has an excellent product and has enjoyed considerable success in winning major blue chip clients. But with threats from other mobile payment solutions and the constant challenges of innovation, it may be prudent for investors to await evidence of a black bottom line before buying a slice of the company.

Capital gain prospects

Meanwhile, AFC Energy (LSE: AFC) has endured a very disappointing 2016 so far, with its share price falling by 37% since the turn of the year. That’s despite investor demand for the company’s shares seeming to be high, as evidenced by this year’s placing, which was oversubscribed by 3.8 times.

While its recent performance has been markedly worse than its 2015 share price rise of 122%, AFC Energy has considerable capital gain prospects. That’s largely because the world is moving towards the greater use of clean energy, which means that AFC Energy may be well-positioned to benefit.

Furthermore, AFC Energy has a sound strategy though which to deliver on its long term potential. Encouragingly, in 2016 it is focusing on the continued development of its capabilities and remains on track to deliver 1GW of capacity installed or under development by 2020. And with the scope for commercial agreements to be signed over the medium term, buying AFC Energy right now could prove to be a profitable long-term move.

The post Are Genel Energy plc, Monitise plc and AFC Energy plc set to rise or fall by 20%? appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Peter Stephens owns shares of AFC Energy. The Motley Fool UK owns shares of Monitise. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Where Boohoo has an advantage over a number of its online peers is with regards to customer loyalty. Boohoo sells its own line of clothing and while it may not have huge pricing potential due to it being at the mid-to-lower price level, it does command a degree of customer loyalty. This should mean that Boohoo’s sales performance is relatively robust and perhaps more consistent than peers that are sellers of branded goods. And with the UK and world economies offering upbeat long-term growth prospects, Boohoo could prove to be an excellent buy in the coming years.

Strategy progress

Similarly, AFC Energy (LSE: AFC) has considerable long-term potential. Although its share price has slumped by 33% since the turn of the year, it continues to make encouraging progress with its strategy. And with 2015 having been such a transformational year for the hydrogen fuel cell specialist, its recent share price fall could be a case of profit-taking from investors who are still sitting on gains of 48% since the start of 2015.

Looking ahead, AFC has considerable potential to deliver high levels of profitability in a world where cleaner energy is likely to be demanded in greater quantities. As such, the fact that it’s forecast to be lossmaking in each of the next two years may add to the company’s risk, but AFC also has the potential to deliver upbeat share price performance if news flow surrounding its eight 2016 milestones is positive.

This was the case in 2015 as the company derisked its proprietary fuel cell technology and while it remains a small and relatively high-risk stock, it could be of interest to less risk-averse investors.

Tough times

Meanwhile, online advertising specialist Blinkx (LSE: BLNX) continues to disappoint, with its shares being down 2% since the turn of the year. That’s despite the company making significant progress with its restructuring and efficiency measures, with it reporting that over $40m had been eliminated from its annual expenses in its most recent update.

In spite of this cost control, Blinkx remains lossmaking. Looking ahead, it’s expected to remain so in the current financial year and while its strategy seems to be sound and has included a successful rebranding, it may be wise for investors to await evidence of profitability before buying a slice of the business. After all, that’s what the market appears to be waiting for and without a black bottom line, Blinkx may struggle to ignite investor interest over the medium term.

The post 3 small-cap high flyers? Boohoo.Com plc, AFC Energy plc and Blinkx plc appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Peter Stephens owns shares of AFC Energy. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

An exciting year ahead

The release of the company’s full-year results could be the reason for this upturn in fortune for AFC’s share price. Although there appears to have been some profit taking immediately following the release, AFC’s results showed that the company continues to make encouraging progress. For example, last year it successfully tested multiple fuel cell stacks and completed milestone 10 of its POWER-UP programme. Furthermore, AFC has also signed heads of agreements with manufacturers and recently raised £3.6m through an oversubscribed placing.

Looking ahead, AFC is focused on the delivery of international contracts for the deployment of its fuel cell system and also on enhancing the operability of its fuel cell system. As such, 2016 could be another exciting year for the company and with cleaner fuels likely to become a more important part of the energy mix, AFC could be a worthwhile buy for less risk averse investors.

Better options elsewhere

Also rising today were shares in oil and gas engineering services business Plexus (LSE: POS) — they increased by 11%. Although there has been no significant news released by the company, its shares have soared by 26% in the last week alone. The latest piece of news released by the company was its interim results at the end of March where it outlined a plan to suspend dividend payments given the sharp reduction in exploration activity across the oil and gas sector.

While this may not be popular with many investors in the short run, the decision to suspend dividends seems to be a sensible one. That’s because it will help to shore up the financial standing of the business and could lead to a stronger company in the long run.

Looking ahead, Plexus is forecast to move into the red in the current year and to remain so in the following year. While it has the potential to turn its fortunes around, there appear to be better options available elsewhere in the oil and gas sector. Therefore, despite its recent share price run, Plexus does not seem to offer a sufficiently appealing risk/reward ratio to merit investment right now.7

On track to deliver

Meanwhile, shares in Iofina (LSE: IOF) were also among the major movers today, with them closing up a whopping 50%. This seems to be a carryover of yesterday’s performance when Iofina also rose significantly following the release of its first quarter update. It showed that the iodine explorer and producer remains on track to deliver its production guidance for the first-half of the year, with costs encouragingly being lower.

Looking ahead, Iofina’s dramatic share price rise could continue in the short run, although such a significant rise could also trigger a degree of profit taking. With Iofina forecast to move into profitability in the next financial year, investor sentiment could improve, although it remains a small and relatively high risk purchase at the present time.

The post Why Iofina plc, AFC Energy plc And Plexus Holdings PLC Are Among Today’s Major Movers appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Peter Stephens owns shares of AFC Energy. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Today, I’m looking at three companies that appear to have potential as world-beaters: Sirius Minerals (LSE: SXX), RM2 International (LSE: RM2) and AFC Energy (LSE: AFC).

Great long-term prospect

Sirius Minerals owns “the world’s largest and highest-grade polyhalite deposit”, and aims to become “a leading global multi-nutrient fertilizer producer”. Furthermore, the company forecasts impressively low operating costs, “delivering industry leading cash margins of 70% to 85%”, and, just for good measure, reckons the resource has a lifetime of “100+ years”.

Sirius has done a fantastic job of gaining planning approval for the project, which sits in the North York Moors National Park. Working towards first production in 2021, the company forecasts a capital funding requirement of $3.56m, the aim being for part to come from new equity but the majority from borrowing.

At a current share price of 15.5p, Sirius is valued in the market at about £350m. If management can do as good a job on the capital funding as it did on gaining planning approval, and if there aren’t too many setbacks or cost-overruns in construction, investors today could be looking at a great long-term prospect, even with a sizeable shareholder dilution in the first stage of funding.

One to watch

RM2 International is in the process of commercialising its innovative long-life composite pallet, together with tracking and management software, “to establish a disruptive presence in global pallet supply”.

However, the company has endured some setbacks and delays. Last September, management said it would be changing the pallet coating as a result of customer feedback, pushing back mass production into 2016. The delay necessitated a £30m placing. Today, RM2 has announced it will be shifting production to China. However, as a consequence of moving some of its manufacturing assets from its existing Canada base, the company “will fall well short of its 2016 production target”.

The business — valued at about £150m at the current 37.5p a share — still has the potential to deliver, but with the history of delays and a further fundraising looking like it’s in the offing, it may be prudent to watch this one for the time being.

Riskier proposition

AFC Energy describes itself as “the world’s leading developer of low-cost alkaline fuel cell technology”. The company is focused on large-scale industrial applications, and says its technology “has the potential to be the catalyst, which transforms the way in which industries of today produce energy for tomorrow”. The company has completed an ambitious programme to prove its technology at a gas plant in Germany — only marginally over schedule and marginally under the target output — and is currently busy optimising the system.

AFC is aiming for 1,000MW of capacity installed or under development by 2020, and so far has a 50MW project development agreement in Korea with an expected revenue to the company of £400m over 10 years.

At a current share price of 15p, AFC is valued by the market at £46m. I see a clean-energy technology company as an inherently riskier proposition than a potash mine or pallet manufacturer, but AFC does look to be an interesting prospect in this sector.

The post Can Sirius Minerals PLC, RM2 International SA & AFC Energy plc Grow Into World-Beaters? appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

G A Chester has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

While this is disappointing, Renishaw’s track record of profitability has been relatively volatile. In other words, it’s not an especially stable company, so ups and downs regarding its bottom line are perhaps to be expected. However, with its shares trading on a hefty premium to the wider market, they could come under further pressure in the near term. For example, even after today’s fall Renishaw trades on a price-to-earnings (P/E) ratio of around 18, which indicates that it may be prudent to await a lower share price before buying-in.

Not so Mitie?

Also reporting disappointing news today was support services company Mitie (LSE: MTO). Its shares have fallen by around 9% after it stated that the company has seen revenue shortfalls in the second half of the financial year, as some work has been either delayed or cancelled as a result of increased economic pressures and uncertainty. This means that revenue will be below previous guidance, but with Mitie having effectively managed its cost base and focused on maintaining margins, it expects profitability for the full year to be within the current range of expectations.

Clearly, investors are somewhat nervous regarding the scope for further pressure on the company’s top line. As such, Mitie now trades on a P/E ratio of just 9.2, which indicates that it could be due for an upward rerating. And with the company forecast to post 6% earnings growth in the next financial year, and 7% the year after, now could be an excellent time to buy Mitie for the long term. That’s especially the case since it has a flexible and relatively resilient business model.

Power pack

Meanwhile, alkaline fuel cell specialist AFC Energy (LSE: AFC) has today released its full-year results, with its shares rising by up to 6% as a result. 2015 was a positive year for the company, with it achieving a number of key milestones such as the successful testing of 25, 51 and complete 101 fuel cell stacks, plus the completion of Milestone 10 and the POWER-UP programme.

Looking ahead, AFC Energy appears to have considerable potential to deliver improved share price performance this year. It ‘s focused on the delivery of international contracts for the deployment of its fuel cell system, while also implementing improvements to further enhance the operability of the fuel cell system. And with demand for cleaner energy increasing across the globe, interest in working with AFC Energy could be relatively high. As such, and while it remains a high-risk play, AFC Energy could be worth buying for the long term.

The post Are Renishaw plc, AFC Energy plc And Mitie Group PLC Worth Buying After Today’s Results? appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Peter Stephens owns shares of AFC Energy. The Motley Fool UK has recommended Renishaw. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The shares are still up 34% from their 29 February low, at 16.1p, so are we looking at a recovery bargain now? There really are two sides to the answer. On the upside, Xcite does have some pretty impressive assets in the shape of its Bentley oil field in the North Sea, with estimated reserves uprated in the firm’s Q3 update.

But on the downside, Xcite has $139m in bonds due for repayment in June, but doesn’t have the cash to meet its obligations in full, and at Q3 time the company also told us it will need new financing before the bond maturity date — maybe there will need to be a new equity issue? This is not the kind of risk I like, so I wouldn’t buy right now.

Precious

Jubilee Platinum (LSE: JLP) shares have gained 125% in the past 12 months, to 3.4p, with news that the firm’s platinum processing plant at its Dilokong Mine is fully commissioned and has reached 85% of its design throughput. This, together with the firm’s other plants, should provide a processing capacity of more than 900,000 tons per year — with 2016 hopefully being a turnaround year that will propel Jubilee towards future profit.

Sufficient funding “from a major financial institution” has been secured to bring the platinum projects into operation, so there doesn’t seem to be any great risk on that front. It’s hard to put a value on Jubilee shares in the absence of any profit forecasts, and brokers recommendations are thin on the ground, but I’m cautiously optimistic.

And the price of platinum has been creeping up a little recently after a lengthy fall, which all helps — Jubilee Platinum could turn out nicely for shareholders.

Hydrogen power

AFC Energy (LSE: AFC) is another company that has yet to reach profitability, but it has hit a few important milestones of late and has an impressive plan in place for the development of its fuel cell technology through 2016.

There is one key fact that cannot be ignored, however, and that’s a 73% share price fall since July 2015 to 16p today. Investors don’t seem to be impressed, so what’s the problem? One thing that keeps cropping up with blue-sky technology companies is that expectations can run ahead of reality, and when a firm does not meet those inflated expectations there can be something of an exodus — and 2016’s progress could be seen by some as disappointingly slower than 2015’s.

But I can’t help feeling that there’s been something of an over-reaction and that the shares are too heavily sold. Again we don’t have brokers’ recommendations to help us, but AFC could be a risky bargain.

The post Should You Buy Xcite Energy Limited, Jubilee Platinum PLC And AFC Energy plc Today? appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
• 93 years of dividend growth! 3 FTSE 100 shares to target income

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

It’s all down to a major shale discovery in the firm’s Icewine Alsakan exploration announced on 15 February, after anticipation had already been pushing up the price. But the big question is, can the shares in this AIM tiddler keep on going?

Well, the discovery looks like it could be very high quality stuff, with the initial announcement telling us the asset lies in a “thermal maturity sweetspot” (which is, apparently, a very good thing indeed). Then a further update on 29 February made the shale deposits sound even better than originally thought.

Although the apparent quality of the discovery means a profitable farmout deal might be possible, the big risk is that 88 Energy actually has no revenue and there’s no idea yet of the costs to turn Icewine into a productive asset or of where the cash might come from. Still, if you’re brave enough for the risk, you might want to take a closer look.

Minerals recovery?

Shares in Amur Minerals Corporation (LSE: AMC) have lost 83% since their peak in June 2015, to 6.62p, but since a low on 16 February they’ve actually picked up 31%. News of the company’s intended 2016 developments at its Kun-Manie nickel copper sulphide project in far eastern Russia seem to have pleased investors, as the company has been investing in new equipment that has doubled its drill capacity. The new kit is due to be sent out over the ice road this month.

Amur should be able to drill to a depth of 15,000 metres this year, it says, and the company is teetering on the edge of profitability. This year could even be the year in which Amur turns its back on a few very slow years. And I do think that, with production costs being low and its cash reserves strong after December’s equity issue, there’s a decent long-term future for the company. But it’s not without risks, not the least of which is that it’s under Russian political control.

Renewable profits?

AFC Energy (LSE: AFC) is another that I think could be set to turn the corner towards profit, despite its shares having lost 71% of their value since July 2015, to 16.7p.

What encourages me about the fuel cell developer is its strategic milestone plan for 2016, just released on 1 March. It includes developing a second-generation fuel cell plant, and giving it an extended test of more than a month while confirming it meets industrial standards. It also includes finalising design and engineering of its 10kW and 1MW systems, and enabling deployment in 2016 and 2017, respectively; and progressing with a number of international fuel cell projects and strategic partnerships.

I see a promising long-term future, so why are the punters apparently unimpressed? I suspect the main reason is the probably the long lead time before AFC can expect any profits, coupled with very few analysts covering the stock and an absence of recommendations. One for the bold I think.

The post 3 AIM High-Flyers? 88 Energy Ltd, Amur Minerals Corporation, AFC Energy plc appeared first on The Motley Fool UK.

More reading

• How scared should investors be about a stock market crash? I say, not at all
• Time to buy IAG shares now they’re down 19% and trading at just 6 times earnings?
• 3 of the best UK growth, value and dividend shares to consider in an ISA!
• Here’s why the stock market may FINALLY crash in May… and I can’t stop smiling
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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.